Premium Brands Holdings Corporation Announces Acquisition Premium Brands Holdings Corporation announces acquisition of Island City Baking, Conte Foods and Larosa Fine Foods
07:00 EST Thursday, December 01, 2016
VANCOUVER, Dec. 1, 2016 /CNW/ - Premium Brands Holdings Corporation (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today that it has acquired Island City Baking and its affiliate Conte Foods.
Island City Baking, which was founded in 1990, is a leading manufacturer of fresh and frozen artisan breads. It operates out of a modern 45,000 square foot production facility located in Richmond, BC and services retail and foodservice customers across southern BC.
Conte Foods, which was founded in 1993, is a distributor of a variety of specialty food products including items imported from various parts of Europe and fresh pasta produced at its new 16,000 square foot facility located in Burnaby, BC. Island City and Conte Foods, on a combined basis, have annual sales of approximately $20 million.
In a separate transaction, Premium Brands also announced the acquisition of the business and assets of Larosa Fine Foods, a manufacturer and wholesaler of a variety of specialty Italian products. Larosa, which has annual sales of approximately $4 million and is currently based in Vancouver, BC, will be moving its operations into Conte Foods' Burnaby facility.
Financial Details
The purchase price for Island City and Conte Foods, which is subject to a closing net working capital adjustment, was $20.3 million consisting of $13.3 million in cash, $3.0 million in Premium Brands common shares and a minority equity stake in the Premium Brands' bakery group.
The purchase price for Larosa was $0.7 million in cash.
Both transactions are expected to be immediately accretive to both Premium Brands' earnings per share and free cash flow per share on an annual basis.